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Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
What we will do in this
workshop?2
We will go together through a journey
on how we can build a competitive startup.
We are going to explore together the different stages we
need to cover to reach a competitive startup.
Due to the available time of the workshop, we will not be
able to go deeper, we will just try to identify what we
need to do.
Setting Expectations…
3
Our real Objective is how to
reach Competitiveness
Through the
Commercializing
technologies (ideas) which
creates wealth for
Lets Agree together about some
terms
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
What’s A Company?
A business organization which sells a
product or service in exchange for
revenue and profit
5
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
How Are Companies
Organized?
Companies are organized around
Business Models
6
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
What’s a Business Model?
A business model describes all the parts of
the company necessary to make money
7
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
What About My Technology?
Your technology is one of the many critical
pieces necessary to build a company.
It is part of the “Value Proposition”
8
Customers don’t care about your
technology
They are trying to solve a problem
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
What’s A Startup?
A startup is a temporary organization
designed to search for a repeatable and
scalable business model
9
Know, Lets
Start our Discovery
Journey
How to Build A
Startup?
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
How to Build A Startup
 Idea
 Business Model
 Size Opportunity
 Customer Development
11
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Process of Build A Startup
Idea
Size of the
Opportunity
Business
Model(s)
Customer
Discovery
Customer
Validation
Business
Model(s)
Size of the
Opportunity
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Lets Start with the Business
Model
Idea
Business
Model(s)
Size of the
Opportunity
Customer
Discovery
Customer
Validation
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
what are those parts? what
parts is a business model
composed of?
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
building
blocks
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
CUSTOMER SEGMENTS
images by JAM
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
VALUE PROPOSITIONS
images by JAM
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
CHANNELS
images by JAM
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
CUSTOMER RELATIONSHIPS
images by JAM
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
REVENUE STREAMS
images by JAM
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
KEY RESOURCES
images by JAM
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
KEY ACTIVITIES
images by JAM
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
KEY PARTNERS
images by JAM
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
COST STRUCTURE
images by JAM
images by JAM
customer
segments
key
partners
cost
structure
revenue
streams
channels
customer
relationships
key
activities
key
resources
value proposition
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Business
Model Canvas
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
to describe, challenge,
design, and invent
business models more
systematically
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Business Model Canvas
building
block
building
block
building
block
building
block
building
block
building
block
building
block
building
block
building
block
building
block
building
blockbuilding
block
building
block
building
block
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup 29
Nespresso
machines
Nespresso
.com
1 x
machine
sales
distribution
channels
coffee
production
facilites
B2C
distribution
production
Nespresso
club
Nespresso
pods
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
what is the most powerful about
Business Model Canvas?
using a shared language, with the
ability to continuously revisit,
update and enhance in a spiral
manner.
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Lets have a deeper look on
Customer Development
Idea
Business
Model(s)
Size of the
Opportunity
Customer
Discovery
Customer
Validation
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Customer Development
 Get Out of the Building and Search
for the Business Model
You Have Your Idea and initial Business Model
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
The Customer Development
Process
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
The Minimum Viable Product
(MVP)
•Smallest feature set that gets you the most …
- orders, learning, feedback, failure…
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
The Customer Development
Process
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Pivot
A Pivot is the change of one or
more Business Model Canvas
Components
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
The Pivot
• The heart of Customer Development
• Iteration without crisis
• Fast, agile and opportunistic
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Pivot
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Pivot Cycle Time Matters
• Speed of cycle minimizes cash needs
• Minimum feature set speeds up cycle time
• Near instantaneous customer feedback drives feature set
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Pivot
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
The Customer Development
Process
Customer Discovery
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Bus Model
Canvas
Extract
Hypotheses
Test
Problem
Test
Solution
Pivot or
Proceed
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
The Customer Development
Process
Customer Validation
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Get Ready
to Sell
Sell, Sell,
Sell
Positioning
Pivot or
Proceed
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Lets have a deeper look on
How to Size the Opportunity
Idea
Business
Model(s)
Size of the
Opportunity
Customer
Discovery
Customer
Validation
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Market/Opportunity Analysis
How Big is It?: Market/Opportunity Analysis
 Identify a Customer and Market Need
 Size the Market
 Competitors
 Growth Potential
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
How Big is the Pie?
Total Available Market
Total Available Market
• How many people would want/need
the product?
• How large is the market be
(in $’s) if they all bought?
• How many units would that be?
How Do I Find Out?
• Industry Analysts – Gartner, Forrester
• Wall Street Analysts – Goldman, Morgan
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
How Big is My Slice?
Served Available Market
• How many people need/can use product?
• How many people have the money to
buy the product
• How large would the market be (in $’s)
if they all bought?
• How many units would that be?
How Do I Find Out?
• Talk to potential customers
Served
Available
Market
Total
Available
Market
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
How Much Can I Eat?
Target Market
• Who am I going to sell to in year 1, 2 & 3?
• How many customers is that?
• How large is the market be
(in $’s) if they all bought?
• How many units would that be?
How Do I Find Out?
• Talk to potential customers
• Identify and talk to channel partners
• Identify and talk to competitors
Total
Available
Market Target
Market
Served
Available
Market
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Market Size: Summary
 Market Size Questions:
 How big can this market be?
 How much of it can we get?
 Market growth rate
 Market structure (Mature or in flux?)
 Most important: Talk to Customers and Sales Channel
 Next important: Market size by competitive approximation
 analyst reports are great
 And : Market research firms Like Forester, Gartner
To Conclude
To Reach Competitive Startup
Which creates Wealth.
You must put time and effort
To build your Business Model
Which is equal or greater than, what you have done
To build your technology
Idea
(Inventio
n)
Team
Busine
ss
Model
Wealth
Creatio
n
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
Recommended Resources and
Readings
 Books
 Business Model Generation: http://www.businessmodelgeneration.com
 The Four Steps to the Epiphany:
http://www.amazon.com/gp/product/0976470705/ref=as_li_tf_tl?ie=UTF8&tag=wwwsteveblank-
20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0976470705
 Crossing the Chasm: http://www.amazon.com/Crossing-Chasm-Marketing-Disruptive-
Mainstream/dp/0060517123/ref=sr_1_1?s=books&ie=UTF8&qid=1349623397&sr=1-
1&keywords=crossing+the+chasm
 The Innovators Solution: http://www.amazon.com/Innovators-Solution-Creating-Sustaining-
Successful/dp/1578518520/ref=sr_1_1?s=books&ie=UTF8&qid=1349623444&sr=1-
1&keywords=the+innovators+solution
 Customized Management of Technology: http://www.amazon.com/Customized-Management-Technology-
Tarek-Khalil/dp/0073228982/ref=sr_1_1?s=books&ie=UTF8&qid=1349623481&sr=1-
1&keywords=Customized+Management+of+Technology
 Steve Blank Online Resources
 Steve Blank Online Website: http://steveblank.com
 Steve Blank Online Course Syllabus: http://www.slideshare.net/sblank/tagged/syllabus
 Steve Blank Online Free Course “How to build a Startup”:
http://www.udacity.com/overview/Course/ep245/CourseRev/1
Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
About Motaz Al-Agamawi
Motaz Al-Agamawi is an information technology professional with ten years of
combined experience as a technology commercialization expert and entrepreneur.
As of today Motaz is a Board Member in Information Systems International Services-
ISIS and Arabic Information Systems- INFO ARAB, Founder of IB- Interneting
Behavior a startup company. Prior to that Motaz was the Vice President for Business
Development in ISIS. During his professional career he was able to commercialize
technologies to several fortune five hundred companies.
Since 2009, Motaz has conducted several undergraduate and professional training
courses focusing on entrepreneurship, innovation and management of technology.
He has also mentored several startups and many of them has succeeded to close
venture deals and won international entrepreneurship awards. One of those
companies has won the second prize in the Idea to Product international context in
2012. Motaz consider himself a technologist, who has the adequate knowledge and
experience to propose and customize the adequate technologies to serve the target
customer segment business objectives and strategies.
Motaz is holding a B.Sc. in Computer Science and expected to complete his M.Sc. in
Management of Technology in Spring 2013. He has received several awards

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Business Model Design, For a Competitive Startup

  • 1. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup
  • 2. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup What we will do in this workshop?2 We will go together through a journey on how we can build a competitive startup. We are going to explore together the different stages we need to cover to reach a competitive startup. Due to the available time of the workshop, we will not be able to go deeper, we will just try to identify what we need to do. Setting Expectations…
  • 3. 3 Our real Objective is how to reach Competitiveness Through the Commercializing technologies (ideas) which creates wealth for
  • 4. Lets Agree together about some terms
  • 5. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup What’s A Company? A business organization which sells a product or service in exchange for revenue and profit 5
  • 6. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup How Are Companies Organized? Companies are organized around Business Models 6
  • 7. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup What’s a Business Model? A business model describes all the parts of the company necessary to make money 7
  • 8. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup What About My Technology? Your technology is one of the many critical pieces necessary to build a company. It is part of the “Value Proposition” 8 Customers don’t care about your technology They are trying to solve a problem
  • 9. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup What’s A Startup? A startup is a temporary organization designed to search for a repeatable and scalable business model 9
  • 10. Know, Lets Start our Discovery Journey How to Build A Startup?
  • 11. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup How to Build A Startup  Idea  Business Model  Size Opportunity  Customer Development 11
  • 12. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Process of Build A Startup Idea Size of the Opportunity Business Model(s) Customer Discovery Customer Validation Business Model(s) Size of the Opportunity
  • 13. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Lets Start with the Business Model Idea Business Model(s) Size of the Opportunity Customer Discovery Customer Validation
  • 14. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup what are those parts? what parts is a business model composed of?
  • 15. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup building blocks
  • 16. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup CUSTOMER SEGMENTS images by JAM
  • 17. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup VALUE PROPOSITIONS images by JAM
  • 18. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup CHANNELS images by JAM
  • 19. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup CUSTOMER RELATIONSHIPS images by JAM
  • 20. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup REVENUE STREAMS images by JAM
  • 21. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup KEY RESOURCES images by JAM
  • 22. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup KEY ACTIVITIES images by JAM
  • 23. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup KEY PARTNERS images by JAM
  • 24. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup COST STRUCTURE images by JAM
  • 26. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Business Model Canvas
  • 27. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup to describe, challenge, design, and invent business models more systematically
  • 28. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Business Model Canvas building block building block building block building block building block building block building block building block building block building block building blockbuilding block building block building block
  • 29. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup 29 Nespresso machines Nespresso .com 1 x machine sales distribution channels coffee production facilites B2C distribution production Nespresso club Nespresso pods
  • 30. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup what is the most powerful about Business Model Canvas? using a shared language, with the ability to continuously revisit, update and enhance in a spiral manner.
  • 31. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Lets have a deeper look on Customer Development Idea Business Model(s) Size of the Opportunity Customer Discovery Customer Validation
  • 32. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Customer Development  Get Out of the Building and Search for the Business Model You Have Your Idea and initial Business Model
  • 33. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup The Customer Development Process Customer Discovery Customer Validation Customer Creation Company Building
  • 34. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup The Minimum Viable Product (MVP) •Smallest feature set that gets you the most … - orders, learning, feedback, failure… Customer Discovery Customer Validation Customer Creation Company Building
  • 35. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup The Customer Development Process Customer Discovery Customer Validation Customer Creation Company Building Pivot
  • 36. A Pivot is the change of one or more Business Model Canvas Components
  • 37. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup The Pivot • The heart of Customer Development • Iteration without crisis • Fast, agile and opportunistic Customer Discovery Customer Validation Customer Creation Company Building Pivot
  • 38. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Pivot Cycle Time Matters • Speed of cycle minimizes cash needs • Minimum feature set speeds up cycle time • Near instantaneous customer feedback drives feature set Customer Discovery Customer Validation Customer Creation Company Building Pivot
  • 39. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup The Customer Development Process Customer Discovery Customer Discovery Customer Validation Customer Creation Company Building Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed
  • 40. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup The Customer Development Process Customer Validation Customer Discovery Customer Validation Customer Creation Company Building Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed
  • 41. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Lets have a deeper look on How to Size the Opportunity Idea Business Model(s) Size of the Opportunity Customer Discovery Customer Validation
  • 42. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Market/Opportunity Analysis How Big is It?: Market/Opportunity Analysis  Identify a Customer and Market Need  Size the Market  Competitors  Growth Potential
  • 43. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup How Big is the Pie? Total Available Market Total Available Market • How many people would want/need the product? • How large is the market be (in $’s) if they all bought? • How many units would that be? How Do I Find Out? • Industry Analysts – Gartner, Forrester • Wall Street Analysts – Goldman, Morgan
  • 44. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup How Big is My Slice? Served Available Market • How many people need/can use product? • How many people have the money to buy the product • How large would the market be (in $’s) if they all bought? • How many units would that be? How Do I Find Out? • Talk to potential customers Served Available Market Total Available Market
  • 45. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup How Much Can I Eat? Target Market • Who am I going to sell to in year 1, 2 & 3? • How many customers is that? • How large is the market be (in $’s) if they all bought? • How many units would that be? How Do I Find Out? • Talk to potential customers • Identify and talk to channel partners • Identify and talk to competitors Total Available Market Target Market Served Available Market
  • 46. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Market Size: Summary  Market Size Questions:  How big can this market be?  How much of it can we get?  Market growth rate  Market structure (Mature or in flux?)  Most important: Talk to Customers and Sales Channel  Next important: Market size by competitive approximation  analyst reports are great  And : Market research firms Like Forester, Gartner
  • 48. To Reach Competitive Startup Which creates Wealth. You must put time and effort To build your Business Model Which is equal or greater than, what you have done To build your technology Idea (Inventio n) Team Busine ss Model Wealth Creatio n
  • 49. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup Recommended Resources and Readings  Books  Business Model Generation: http://www.businessmodelgeneration.com  The Four Steps to the Epiphany: http://www.amazon.com/gp/product/0976470705/ref=as_li_tf_tl?ie=UTF8&tag=wwwsteveblank- 20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0976470705  Crossing the Chasm: http://www.amazon.com/Crossing-Chasm-Marketing-Disruptive- Mainstream/dp/0060517123/ref=sr_1_1?s=books&ie=UTF8&qid=1349623397&sr=1- 1&keywords=crossing+the+chasm  The Innovators Solution: http://www.amazon.com/Innovators-Solution-Creating-Sustaining- Successful/dp/1578518520/ref=sr_1_1?s=books&ie=UTF8&qid=1349623444&sr=1- 1&keywords=the+innovators+solution  Customized Management of Technology: http://www.amazon.com/Customized-Management-Technology- Tarek-Khalil/dp/0073228982/ref=sr_1_1?s=books&ie=UTF8&qid=1349623481&sr=1- 1&keywords=Customized+Management+of+Technology  Steve Blank Online Resources  Steve Blank Online Website: http://steveblank.com  Steve Blank Online Course Syllabus: http://www.slideshare.net/sblank/tagged/syllabus  Steve Blank Online Free Course “How to build a Startup”: http://www.udacity.com/overview/Course/ep245/CourseRev/1
  • 50. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup About Motaz Al-Agamawi Motaz Al-Agamawi is an information technology professional with ten years of combined experience as a technology commercialization expert and entrepreneur. As of today Motaz is a Board Member in Information Systems International Services- ISIS and Arabic Information Systems- INFO ARAB, Founder of IB- Interneting Behavior a startup company. Prior to that Motaz was the Vice President for Business Development in ISIS. During his professional career he was able to commercialize technologies to several fortune five hundred companies. Since 2009, Motaz has conducted several undergraduate and professional training courses focusing on entrepreneurship, innovation and management of technology. He has also mentored several startups and many of them has succeeded to close venture deals and won international entrepreneurship awards. One of those companies has won the second prize in the Idea to Product international context in 2012. Motaz consider himself a technologist, who has the adequate knowledge and experience to propose and customize the adequate technologies to serve the target customer segment business objectives and strategies. Motaz is holding a B.Sc. in Computer Science and expected to complete his M.Sc. in Management of Technology in Spring 2013. He has received several awards
  • 51. Business Model Design By: Motaz Al-AgamawiFor Competitive Startup 51 thank you… 51 For More Information and Further Discussions Al-Motaz Bellah Alaa Al-Agamawi Email: magamawi@gmail.com Linkedin Profile: http://www.linkedin.com/in/motazalagamawi It will be my pleasure to continue the discussion with you through: SlideShare Profile: http://www.slideshare.net/magamawi